Volvo S90 dropped from U.S. market as tariffs make Chinese imports unsellable

Volvo Car USA will no longer import its S90 luxury sedan to the United States, as escalating trade tensions and sweeping tariffs on Chinese goods make it increasingly impractical to do business. As reported by Automotive News, the decision comes amid a growing list of foreign automakers rethinking their presence in the U.S. market.

Built in Daqing, China, the Volvo S90 was already a niche product stateside, selling just 1,364 units last year. But new U.S. tariffs—now a staggering 125 percent for Chinese-built vehicles—have turned the slow-seller into a non-starter. For comparison, vehicles imported from other countries face a 25-percent tariff.

“It’s a low-volume car for the US,” a source told Automotive News. “Rather than deal with [the tariffs], they are just going to cut it out.”

The sweeping tariffs, implemented by the Trump administration as of April 9, reflect a protectionist approach that’s proving disruptive for an industry built on global supply chains. With such a drastic hike, the U.S. has effectively priced out certain cars from its own market—regardless of demand or quality.

Volvo has not yet issued an official statement on the S90’s exit or its availability in other markets, but the company is expected to redirect its focus to more profitable, tariff-friendly segments such as its XC90, XC60, and XC40 crossovers. To soften the blow, the brand reportedly plans to reduce incentives across the board to offset rising costs.

For Volvo, the challenge is deeper than just one model: 96.8% of its vehicles sold in the U.S. are imported. When the rules change overnight, as they often seem to in Washington, automakers are left scrambling to adapt.

The Volvo S90 is just the latest casualty. Lotus, Jaguar Land Rover, Volkswagen, and Audi have also hit the pause button on U.S. shipments while they assess the shifting tariff landscape. It’s a growing list of companies finding that navigating American policy may now require as much agility as engineering.

As it stands, the future for imported vehicles in the U.S. looks increasingly uncertain—especially when the price of entry is decided less by the market and more by politics.